Question: What is the difference check on a 1-Year long forward GBP contract given that the size of the contract is GBP 280,000; the one-year forward

What is the difference check on a 1-Year long forward GBP contract given that the size of the contract is GBP 280,000; the one-year forward rate is F1USD/GBP= 1.26; and X1USD/GBP= 1.28?

Group of answer choices:

A.) Loss of USD 11,200

B.) Profit of USD 5,600

C.) Loss of USD 5,600

D.) Profit of USD 11,200

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